Starling, supported by Goldman Sachs, gears up to broaden presence in Asia-Pacific market

British digital bank Starling has set its sights on expanding into the Asia-Pacific region, marking its first move outside of Europe. With backing from Goldman Sachs, Starling is in discussions with an Asian bank about bringing its Engine banking-as-a-service platform to a country in Asia, according to Nick Drewett, Chief Commercial Officer at Starling.

While Starling has not disclosed the specific country or Asian bank involved due to the confidentiality of the agreement, Drewett mentioned that the partnership would center around the use of Starling’s software to launch small and medium-sized enterprise (SME) accounts, rather than personal banking services.

In an interview with CNBC, Drewett emphasized the significance of this expansion, stating, “It’s a different proof point for us: one in Europe, one in Asia-Pacific.” He also expressed confidence in Starling’s ability to handle the implementation and its potential for acceleration as the company becomes more established in these markets.

Starling’s Engine platform, introduced in March 2022, serves as a technology foundation for financial technology firms and large banks by streamlining the development of digital banking services, including checking accounts, savings, loans, and mortgages. International expansion is a key focus for Starling, which plans to license its technology to lenders, empowering them to create their own digital-only banking brands with ease.

Drewett emphasized that the partnership with the Asian bank is viewed as a long-term collaboration rather than a simple software-as-a-service transaction. Starling previously indicated its intention to expand further into Europe using Engine, initially planning to secure a bank license from the Irish central bank. However, the company shifted its focus to international expansion through its software offering.

A recognized leader in the finance industry, Starling has experienced significant growth since its establishment in 2015. With over 3.6 million customers and more than 510,000 small and medium-sized enterprise customers, it has evolved from a nimble challenger in the UK market to an established brand. Notable investors include Goldman Sachs, Qatar Investment Partners, and Fidelity Management and Research Company.

Anne Boden, the co-founder of Starling, recently stepped down from her position on June 30 to prevent potential conflicts of interest. However, she remains a significant shareholder with a 4% stake in the company.